Copart(US:CPRT)2024-11-26 21:56Financial Performance - Total service revenues and vehicle sales for the three months ended October 31, 2024, reached $1,146,829, an increase of 12.4% compared to $1,020,416 for the same period in 2023[13]. - Net income attributable to Copart, Inc. for the three months ended October 31, 2024, was $362,086, representing a 8.9% increase from $332,527 in the prior year[13]. - Basic net income per common share increased to $0.38 for the three months ended October 31, 2024, compared to $0.35 for the same period in 2023[13]. - Operating income for the three months ended October 31, 2024, was $406,367, slightly up from $395,376 in the same period last year, reflecting a growth of 2.5%[13]. - Comprehensive income attributable to Copart, Inc. for the three months ended October 31, 2024, was $360,319, compared to $296,174 for the same period in 2023, an increase of 21.6%[15]. - Net income for the three months ended October 31, 2024, was $361,176, compared to $332,532 for the same period in 2023, representing an increase of approximately 8.6%[1]. - Total service revenues increased to $986,336 for the three months ended October 31, 2024, from $859,536 in 2023, reflecting a growth of about 14.7%[30]. - Vehicle sales in the United States amounted to $87,549 for the three months ended October 31, 2024, compared to $78,382 in 2023, indicating an increase of approximately 11.1%[31]. Assets and Liabilities - Total current assets as of October 31, 2024, were $4,733,117, up from $4,418,184 as of July 31, 2024, reflecting a growth of 7.1%[9]. - Total assets increased to $8,869,487 as of October 31, 2024, compared to $8,427,764 as of July 31, 2024, marking a rise of 5.2%[9]. - Total liabilities as of October 31, 2024, were $949,541, an increase from $879,209 as of July 31, 2024, indicating a growth of 8.0%[9]. - Total stockholders' equity rose to $7,896,312 as of October 31, 2024, compared to $7,524,011 as of July 31, 2024, an increase of 4.9%[9]. - Accounts receivable, net increased to $801.8 million as of October 31, 2024, compared to $785.9 million as of July 31, 2024[44]. - Cash, cash equivalents, and restricted cash increased significantly to $3,698,118 as of October 31, 2024, from $1,514,111 as of July 31, 2024[9]. Cash Flow and Investments - Cash flows from operating activities provided $482,274 for the three months ended October 31, 2024, up from $375,246 in 2023, marking a rise of about 28.5%[1]. - Net cash provided by investing activities was $1,702,228 for the three months ended October 31, 2024, compared to $1,235,325 in 2023, an increase of approximately 37.8%[1]. - Cash, cash equivalents, and restricted cash at the end of the period totaled $3,698,118, compared to $2,581,567 at the end of the same period in 2023, reflecting a growth of about 43.4%[1]. - The company reported a deferred income tax adjustment of $1,740 for the three months ended October 31, 2024, compared to a negative adjustment of $(988) in 2023[1]. - The company recognized excess tax benefits from stock-based compensation amounting to $4.6 million for the three months ended October 31, 2024[93]. Expenses - General and administrative expenses increased to $105,738 for the three months ended October 31, 2024, compared to $68,643 in 2023, reflecting a rise of approximately 54%[73]. - Total lease expense for the three months ended October 31, 2024, was $9.5 million, compared to $7.8 million for the same period in 2023[49]. - The aggregate amortization expense on amortizable intangible assets was $3.6 million for the three months ended October 31, 2024, compared to $3.1 million for the same period in 2023[50]. - The Company recognized $1.3 million in stock-based compensation expense for the three months ended October 31, 2024, compared to $2.2 million for the same period in 2023[60]. Acquisitions and Growth - The Company recorded acquisition costs of $1.2 million related to the acquisition of Purple Wave, Inc.[42]. - The fair value of the merger consideration paid for Purple Wave, Inc. was $112.1 million, primarily allocated to intangible assets[42]. - The company acquired a controlling interest in Purple Wave, Inc., an online offsite heavy equipment auction company, in October 2023[85]. - The company plans to expand its service offerings and increase revenues through acquisitions and developing additional vehicle storage facilities[85]. - New operational facilities opened from August 2023 to October 2024 include locations in the U.S., U.K., and Spain, enhancing global coverage[85]. Market Trends and Future Outlook - The average age of cars on the road increased from 11.1 years in 2012 to 12.6 years in 2024, impacting total loss frequency and auction returns[81]. - Total loss frequency, which affects service revenue, is driven by the relationship between repair costs and used car values, with an upward trend expected to continue[81]. - The company operates in multiple countries, including the U.S., U.K., Germany, and Brazil, providing a global platform for vehicle remarketing services[77]. - The company’s revenue is influenced by factors such as used car pricing, total loss frequency, and commodity prices, which are subject to market fluctuations[81].